Aebi Schmidt Holding AG

What they do

Aebi Schmidt builds and upfits specialty vehicles: snow removal and de-icing equipment, street and runway sweepers, truck and RV chassis, and truck bodies for commercial fleets and vocations. It also makes equipment for municipal and airport maintenance and for cultivating steep terrain. The company sells through its own organizations in 17 countries, more than 70 locations including over a dozen production facilities and upfitting/service centers, plus dealers in more than 90 additional countries. Brands include Aebi, Schmidt, Monroe, Towmaster, Utilimaster, MB, Magnum, Swenson, Meyer and Spartan RV Chassis.

Revenue drivers

• North America — Largest profit contributor, with Q2 2026 Adjusted EBITDA of $35.5m, up 22% year over year, driven by Walk-in Van ramp-up plus Service Bodies and Airport. North America Net Sales grew 11% organically in Q2 2026.
• Europe and Rest of World — Q2 2026 Adjusted EBITDA of $6.6m, up 25% year over year, on 7% Net Sales growth, supported by higher gross margins in new equipment and aftermarket plus cost discipline.
• Walk-in Van / Utilimaster and Blue Arc — North American walk-in van and truck body manufacturing; backlog conversion following completed production ramp-up was a main driver of Q2 2026 North America growth. Blue Arc is the company's all-electric last-mile delivery brand, launched in 2022.
• Winter maintenance and municipal equipment — Snow removal, de-icing and sweeping equipment sold under Schmidt, Swenson and Meyer, plus municipal vehicles; Airport and Municipal demand are cited as ongoing sources of order strength.

Recent performance

Q2 2026 Net Sales were $496.4m versus $277.7m in Q2 2025, and first-half 2026 sales were $952.0m versus $526.9m a year earlier. Q2 2026 net income attributable to the company was $10.5m, compared with a $2.3m loss in Q2 2025, and first-half net income was $11.2m versus a $0.2m loss. Operating income was $27.0m in Q2 2026 versus $13.9m a year earlier. Adjusted EBITDA was $42.1m, up 22%, at 8.5% of Net Sales, with Q2 2026 Order Intake of $516m up 16% and Order Backlog of $1,279m up 20% versus June 30, 2025. Full-year 2025 net income was $9.7m on revenue of $1.53b, and 2025 operating cash flow was $9.0m.

Strategy

Management points to operational improvements, sales execution and an expanded market footprint as the basis for converting record backlog into revenue. The company completed a Walk-in Van production ramp-up in North America and cites realized synergies and efficiency gains from that ramp-up as the source of over-proportional Adjusted EBITDA growth. It is also investing in securing its supply chain and protecting margins, which it says will temporarily affect leverage, now guided to end 2026 at 2.0x or slightly above versus 2.72x at June 30, 2026. Working capital discipline is a stated priority, with Net Working Capital down 4% or $17m year over year to $449m despite sales growth. The 8-K events log shows a material agreement entered on 2026-04-10 and officer/shareholder-vote items in May 2026.

Risks

• U.S. trade policy and tariffs — The 10-K states that tariffs on goods from Mexico, Canada, China and other jurisdictions raise input costs, may force price increases that reduce demand, and may prompt retaliatory measures affecting exports.
• Profitability volatility — Net income fell to $9.7m in 2025 from $30.7m in 2024 despite revenue rising to $1.53b, showing earnings are sensitive to cost and mix.
• Leverage and debt service — At June 30, 2026 the company had $551.3m of long-term debt including the current portion, $57.6m of shareholder loans, and $109.7m of cash, with leverage guided to end 2026 at 2.0x or slightly above.
• Working capital and supply chain investment — Management attributes the leverage guidance update to temporary investments in securing its supply chain and protecting margins, which could absorb cash if extended.

Outlook

Management confirmed full-year 2026 guidance of Net Sales of $1.95b to $2.15b and Adjusted EBITDA of $175m to $195m. The CFO said revenue is expected to increase sequentially through the rest of the year on continued backlog conversion. Leverage guidance was revised to 2.0x or slightly above at year-end 2026, reflecting temporary supply-chain and margin-protection investments. Order Backlog of $1,279m at June 30, 2026 is cited as providing visibility into growth for the remainder of 2026 and beyond.